Pages: 194 - 214Abstract: Journal of Chinese Economic and Foreign Trade Studies, Volume 10, Issue 3, Page 194-214, October 2017. Purpose In this paper, the authors aim to examine some characteristics of the innovation system and policy in France and China. For comparison, they also highlight some high technology features of Silicon Valley and California. Design/methodology/approach The authors study the characteristics of innovation in France and in China. The authors examine the technology systems and policies in both countries and compare their features with those in Silicon Valley. Findings As far as France is concerned, it can be stated that the innovation system and policy are under transformation, going from a strong state involvement to a more decentralized framework. This evolution leads to a multi-level governance of the innovation system and to the emergence of new actors. For China, the most interesting development in China is the evolution of its internet-related sector. The authors argue here that the internet-driven economy is a radical, systemic technological change and it is rapidly growing in China. Originality/value One of the earliest papers comparing the innovation policies and activities in France, China and Silicon Valley.Citation: Journal of Chinese Economic and Foreign Trade StudiesPubDate: 2017-10-09T02:30:50ZDOI: 10.1108/JCEFTS-05-2016-0015

Pages: 215 - 228Abstract: Journal of Chinese Economic and Foreign Trade Studies, Volume 10, Issue 3, Page 215-228, October 2017. Purpose China is a country with the most number of operating peer-to-peer (P2P) lending platforms (approximately 2,000) worldwide. This study aims to provide an overview on FinTechs in China. It was examined why payment services and P2P lending are so popular in China and what are the determinants for the emergence of P2P lending platforms in different provinces in China. Design/methodology/approach This study conducted a descriptive analysis of P2P lending in China and an empirical analysis of determinants of P2P lending in China. Findings This descriptive analysis shows that the surge in the number of the P2P platforms in China follows an inverted U-shaped phenomenon. However, the outstanding balances of P2P lenders is still increasing, while average yields of P2P lenders have sharply plunged. The empirical findings indicate that P2P lending is more extensive in the region with more mobile phone subscriptions; outstanding balance of P2P lenders in region is negatively associated with the size of traditional banking sector; and the number of the P2P platforms in negatively related to the fixed assets investments in region, whereas average yield is positively associated with the fixed assets investments. Originality/value Currently, almost no research papers with empirical analysis of FinTechs, especially P2P lenders, exist. This study estimates a simple model to find determinants of P2P lending.Citation: Journal of Chinese Economic and Foreign Trade StudiesPubDate: 2017-10-09T02:30:48ZDOI: 10.1108/JCEFTS-06-2017-0015

Pages: 229 - 251Abstract: Journal of Chinese Economic and Foreign Trade Studies, Volume 10, Issue 3, Page 229-251, October 2017. Purpose This study aims to construct mechanisms of big data-driven business model innovation from the market, strategic and economic perspectives and core logic of business model innovation. Design/methodology/approach The authors applied deductive reasoning and case analysis method on manufacturing firms in China to validate the mechanisms. Findings The authors have developed an integrated framework to deduce the elements of big data-driven business model innovation. The framework comprises three elements: perspectives, business model processes and big data-driven business model innovations. As we apply the framework on to three Chinese companies, it is evident that the mechanisms of business model innovation based on big data is a progressive and dynamic process. Research limitations/implications The case sample is relatively small, which is a typical trade-off in qualitative research. Practical implications A robust infrastructure that seamlessly integrates internet of things, front-end customer systems and back-end production systems is pivotal for companies. The management has to ensure its organization structure, climate and human resources are well prepared for the transformation. Social implications When provided with a convenient crowdsourcing platform to provide feedback and witness their suggestions being implemented, users are more likely to share insights about their use experience. Originality/value Extant studies of big data and business model innovation remain disparate. By adding a new dimension of intellectual and economic resource to the resource-based view, this paper posits an important link between big data and business model innovation. In addition, this study has contributed to the theoretical lens of value by contextualizing the value components of a business model and providing an integrated framework.Citation: Journal of Chinese Economic and Foreign Trade StudiesPubDate: 2017-10-09T02:30:53ZDOI: 10.1108/JCEFTS-05-2017-0013

Pages: 252 - 258Abstract: Journal of Chinese Economic and Foreign Trade Studies, Volume 10, Issue 3, Page 252-258, October 2017. Purpose Third-party payments were first introduced by the US firm PayPal. Soon after, China developed a localized version of PayPal – Alipay, which became the main payment method for online transactions in China. Currently, the number of global transactions conducted with Alipay is three times that of PayPal. In addition to online transactions, Alipay also integrates with mobile payment applications to provide offline services, making physical transactions more convenient for users. The authors, in this paper, aim to address how third-party payments technology seems to be playing out an innovation-imitation-catch up story. Design/methodology/approach Krugman (1966) proposed a general-equilibrium model of product cycles under perfect competition where high-tech products are innovated by an “advanced” country and imitated by a “developing” country. The competition between US–China online technologies (e.g. third-party payments) seems to be playing out this innovation-imitation-catch up story. Findings The USA has already put a lot of effort into the operations of credit cards and checks, as well as other infrastructure such as human resources and installation of relevant systems. China lacks the infrastructure for payments made with credit cards and checks, and therefore China’s opportunity cost of moving directly from cash transactions to third-party payments is much less than that of the USA, which is why China holds follower advantage in third-party payment markets. Originality/value The third-party payment technologies appear to be a good example of the argument made by Krugman (1966) regarding the US–China competition on advanced technology, which states that an imitator can catch up with an inventor when the former acquires comparative advantages against the latter.Citation: Journal of Chinese Economic and Foreign Trade StudiesPubDate: 2017-10-09T02:30:52ZDOI: 10.1108/JCEFTS-05-2017-0012

Pages: 259 - 280Abstract: Journal of Chinese Economic and Foreign Trade Studies, Volume 10, Issue 3, Page 259-280, October 2017. Purpose This paper aims to investigate China’s policy on digital trade with the objective to highlight the rationales behind such policy. Design/methodology/approach China’s policy on digital trade is assessed by analysing the main regulations imposed in the country in the period from 1985 to 2016 that have an impact on digital trade. Findings It was found that there are more than 70 measures imposed today that have a negative impact on digital trade. The measures are diverse and can be justified with several policy objectives, namely, industrial policy, public order and national security, and these support China’s fiscal and state-owned enterprise structure. Originality/value This paper analyses China’s policy on digital trade from a new perspective and provides insights on the rationales behind this policy.Citation: Journal of Chinese Economic and Foreign Trade StudiesPubDate: 2017-10-09T02:30:49ZDOI: 10.1108/JCEFTS-06-2017-0016